Chemours Company (the) · NYSE:CC
Chemours Company (the) — Q4 2022 Earnings Presentation
24 slides from Chemours Company (the)'s earnings presentation, Feb 10, 2023
Slide 1: Fourth Quarter & Full Year 2022 Earnings Presentation
Fourth Quarter & Full Year 2022 Earnings Presentation February 9, 2023
Slide 2: Safe Harbor Statement and Other Matters
Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. Forward-looking statements provide current exp
Slide 3: Full Year 2022 Highlights
Full Year 2022 Highlights Financial Performance • Delivered 4% Adj. EBITDA growth and 17% Adj. EPS growth despite challenging 4Q • Drove record full-year Net Sales and Adjusted EBITDA in TSS and APM segments • Generated $447 million of Free Cash Flow Sustainability Driven Growth • Announced Opteon™
Slide 4: Full Year 2022 Financial Summary
Full Year 2022 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ Net Sales up 7% to $6.8 billion reflecting FY22 FY21 Yr/Yr pricing strength across the portfolio, higher volume in TSS and APM segments, Net Sales $6,794 $6,345 $449 partially offset by lower volumes in TT in
Slide 5: Fourth Quarter 2022 Financial Summary
Fourth Quarter 2022 Financial Summary ($ in millions unless otherwise noted) Year-Over-Year ∆ Net Sales down 15% to $1.3 billion primarily 4Q22 4Q21 Yr/Yr reflecting volume decline in TT segment mainly due to softer demand in Europe and Net Sales $1,338 $1,575 $(237) Asia Pacific, and currency hea
Slide 6: Adjusted EBITDA Bridge: 4Q22 versus 4Q21
Adjusted EBITDA Bridge: 4Q22 versus 4Q21 ($ in millions unless otherwise noted) Strong price gains driven by price increases in contracted portfolio, larger proportion of sales in high- value end-markets and steady value-based pricing growth $148 ($122) Volume declines primarily driven by soft d
Slide 7: Liquidity Position
Liquidity Position ($ in millions unless otherwise noted) Gross debt $3.6B Dec. 31, 2022 ending cash balance of $1,102 million Net debt $2.5B TTM Net Leverage(4) 1.9x Q4’22 Operating Cash Flow 1400 generation of $161 million ($67) 161 Capex of $67 million 1200 ($181) 22 Distributed $181 mill
Slide 8: Prudent Capital Allocation
Prudent Capital Allocation Credit Profile Cash Returns to Investment Enhancement Shareholders Invested to support: • Achieved gross debt of $3.6B vs. target Committed to returning the majority of • Safe & reliable of $3.5B Free Cash Flow to shareholders through operations • Cost sharing arrangement
Slide 9: Titanium Technologies Business Summary
Titanium Technologies Business Summary Fourth Quarter and Full-Year Highlights Titanium Technologies Segment Outlook Outlook FY results driven by ore-constrained production in first half and slowing Anticipate we are nearing the end of destocking and expect demand to demand in second half, prima
Slide 10: Thermal & Specialized Solutions Business Summary
Thermal & Specialized Solutions Business Summary Fourth Quarter and Full-Year Highlights Titanium Technologies Segment Outlook Outlook Full year Net Sales increase vs prior-year due to higher pricing driven Improved customer demand for our refrigerants, including continued by changing market and
Slide 11: Advanced Performance Materials Business Summary
Advanced Performance Materials Business Summary Fourth Quarter and Full-Year Highlights Titanium Technologies Segment Outlook Outlook Strong FY results driven by higher sales in high-value end-markets, Improved demand for high-value differentiated products in the including advanced electronics,
Slide 12: APM Portfolio: Performance Solutions and Advanced Materials
APM Portfolio: Performance Solutions and Advanced Materials Performance Solutions Advanced Materials • Differentiated offerings with exceptional performance • Market leading products • Solving challenging problems, primarily in Clean Energy • Product excellence across diverse markets; including & Ad
Slide 13: 2023 Guidance
2023 Guidance Key Business Factors and Assumptions: Adjusted Top and bottom-line growth in TSS segment driven by OpteonTM adoption and market and regulatory dynamics EBITDA $1.20-$1.30 Billion Secular demand growth in advanced electronics and clean energy, partially offset by demand from economi
Slide 14: Our Priorities for Creating Shareholder Value
Our Priorities for Creating Shareholder Value Improve earnings quality of our Titanium Technologies segment Drive sustainability led growth in TSS through low GWP refrigerants and specialized solutions, plus market-driven innovation Drive sustainability led growth in APM through Clean Energy and Adv
Slide 15: ©2023 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2023 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
Slide 16: 2023 Guidance Modeling Assumptions
2023 Guidance Modeling Assumptions Net Sales Segment Low High Comments • Anticipate destocking near end TT Down LDD Down MSD • Expect modest demand recovery through the 2H of 2023 • Expect FY 2023 Adj. EBITDA margin in-line with FY 2022 • Expect demand growth driven by market and regulatory dynamics
Slide 17: Segment Net Sales and Adjusted EBITDA (Unaudited)
Segment Net Sales and Adjusted EBITDA (Unaudited) ($ in millions) Three Months Ended Three Months Ended Year Ended December 31, September 30, December 31, 2022 2021 2022 2022 2021 SEGMENT NET SALES Titanium Technologies $ 606 $ 865 $ 877 $ 3,380 $ 3,355 Thermal & Specialized Solutions 320 295 417 1,
Slide 18: GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliations
GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA, and Adjusted EPS Reconciliations (Unaudited) 18
Slide 19: Free Cash Flow Reconciliations (Unaudited)
Free Cash Flow Reconciliations (Unaudited) ($ in millions) Three Months Ended Year Ended December 31, September 30, December 31, 2022 2021 2022 2022 2021 Cash flows provided by operating activities $ 161 $ 214 $ 301 $ 754 $ 820 Less: Purchases of property, plant, and equipment (67) (83) (72) (307) (
Slide 20: Net Leverage Ratio (Unaudited)
Net Leverage Ratio (Unaudited) As of December 31, ($ in millions) 2022 2021 Total debt principal $ 3,641 $ 3,782 Less: Cash and cash equivalents (1,102) (1,451) Total debt principal, net $ 2,539 $ 2,331 Year Ended December 31, ($ in millions) 2022 2021 Adjusted EBITDA (1) $ 1,361 $ 1,313 Net Leverag
Slide 21: Return on Invested Capital (ROIC) (Unaudited)
Return on Invested Capital (ROIC) (Unaudited) ($ in millions) Year Ended December 31, 2022 2021 Adjusted EBITDA (1) $ 1,361 $ 1,313 Less: Depreciation and amortization (291) (317) Adjusted EBIT $ 1,070 $ 996 ($ in millions) As of December 31, 2022 2021 Total debt, net (2) $ 3,615 $ 3,749 Total equit
Slide 22: Estimated GAAP Net Income to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation
Estimated GAAP Net Income Attributable to Chemours to Adjusted Net Income, Adjusted EBITDA and Adjusted EPS Reconciliation (*) (Unaudited) 22
Slide 23: Estimated GAAP Operating Cash Flows to Free Cash Flow Reconciliations
Estimated GAAP Cash Flows Provided by Operating Activities to Free Cash Flow Reconciliations (*) (Unaudited) 23
Slide 24: ©2023 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks
©2023 The Chemours Company. Chemours™ and the Chemours Logo are trademarks or registered trademarks of The Chemours Company
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